Union Cabinet chaired by the Prime Minister Narendra Modi on 24 February 2016 gave approval to sign an agreement between India and Maldives for the avoidance of double taxation of income from international air transport.
Features of the Agreement
• It will provide tax certainty for airline enterprises of India and Maldives.
• It provides for relief from double taxation for airline enterprises of both the countries way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice-versa.
• The country, to which the product or enterprise belongs to, will impose the tax on the profits from the operation of aircraft in international traffic.
• Mutual Agreement Procedure is also provided to resolve difficulties or doubts which arise during the interpretation or application of the Agreement.
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Who: Union Cabinet
When: 24 February 2016